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WELLNEO SUGAR Co. Ltd.

  • Market Cap: Small Cap
  • Industry: Other Agricultural Products
  • ISIN: JP3676600004
  • TKS: 2117
JPY
2,839.00
-16 (-0.56%)

Sep 24

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Chubushiryo Co., Ltd.
Marubeni Corp.
WELLNEO SUGAR Co. Ltd.
J-Oil Mills, Inc.
Mitsui DM Sugar Holdings Co., Ltd.
Showa Sangyo Co., Ltd.
Yukiguni Maitake Co., Ltd.
Kadoya Sesame Mills Inc.
Hokuto Corp.
Nisshin Seifun Group, Inc.
Nichirei Corp.

Why is WELLNEO SUGAR Co. Ltd. ?

1
Poor Management Efficiency with a low ROE of 4.56%
  • The company has been able to generate a Return on Equity (avg) of 4.56% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 21.55% CAGR growth in Operating Profits over the last 5 years
  • The company has been able to generate a Return on Equity (avg) of 4.56% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate 21.55% of over the last 5 years
4
Flat results in Jun 26
  • INTEREST COVERAGE RATIO(Q) Lowest at 5,858.06
  • INTEREST(Q) Highest at JPY 62 MM
5
With ROE of 8.05%, it has a very attractive valuation with a 1.10 Price to Book Value
  • The stock is trading at a premium compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of 6.53%, its profits have risen by 1.2% ; the PEG ratio of the company is 1.7
6
Underperformed the market in the last 1 year
  • The stock has generated a return of 6.53% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.52%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to WELLNEO SUGAR Co. Ltd. should be less than 10%
  2. Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is WELLNEO SUGAR Co. Ltd. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
WELLNEO SUGAR Co. Ltd.
6.25%
1.24
16.25%
Japan Nikkei 225
43.58%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
18.76%
EBIT Growth (5y)
21.55%
EBIT to Interest (avg)
57.38
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
1.17
Tax Ratio
31.46%
Dividend Payout Ratio
60.14%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.26%
ROE (avg)
4.56%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.10
EV to EBIT
8.36
EV to EBITDA
6.72
EV to Capital Employed
1.10
EV to Sales
0.78
PEG Ratio
1.68
Dividend Yield
NA
ROCE (Latest)
13.13%
ROE (Latest)
8.05%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company
OPERATING CASH FLOW(Y)

Highest at JPY 12,619 MM

ROCE(HY)

Highest at 9.07%

RAW MATERIAL COST(Y)

Fallen by -14.92% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 12.14 times

-13What is not working for the Company
INTEREST COVERAGE RATIO(Q)

Lowest at 5,858.06

INTEREST(Q)

Highest at JPY 62 MM

Here's what is working for WELLNEO SUGAR Co. Ltd.

Operating Cash Flow
Highest at JPY 12,619 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debtors Turnover Ratio
Highest at 12.14 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by -14.92% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for WELLNEO SUGAR Co. Ltd.

Interest
At JPY 62 MM has Grown at 106.67%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio
Lowest at 5,858.06
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest
Highest at JPY 62 MM
in the last five periods and Increased by 106.67% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

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